The Department of the Treasury and the Internal Revenue Service released new guidance that is “designed to expand the use of income annuities in 401(k) plans.”
CHICAGO, Sept. 20, 2012 /PRNewswire/ -- Retirement planning is constantly changing making it necessary to have a solid retirement strategy. In the past, many could rely on pension plans and social security benefits, but pension plans are increasingly rare1 and Social Security benefits should not be used as a sole source of retirement.
Many Americans are at risk of running out of money in retirement. According to a recent Employee Benefit Research Institute study (EBRI), nearly 47 percent of early baby boomers (ages 56 to 62) are at risk of outliving their retirement savings. "To develop a sustainable strategy that meets your specific needs, some important considerations would be your age atretirement, life expectancy, living expenses and the rate of return you expect from your investments," said Dean Urbanski, Vice President, BMO Harris Financial Advisors, Inc., a part of BMO Financial Group.
Here are a few tips from Urbanski on planning for retirement.
Said Urbanski "Whatever your specific plans, it's crucial that you enter retirement with a strategy for turning your savings into a retirement 'paycheck' that will allow you to live retirement on your own terms." To learn how to begin, contact your BMO Harris Financial Advisor or visit www.bmoharris.com/financialadvisors.
1 Source: Towers Watson. 2011. "Prevalence of Retirement Plan Types in the Fortune 100 in 2011." (July)
Securities, investment advisory services and insurance products are offered through BMO Harris Financial Advisors, Inc. Member FINRA/SIPC. SEC-registered investment adviser. Securities and insurance products offered are: NOT A DEPOSIT – NOT INSURED BY THE FDIC OR ANY FEDERAL GOVERNMENT AGENCY – NOT GUARANTEED BY ANY BANK – MAY LOSE VALUE.
BMO Harris Financial Advisors, Inc., BMO Harris Bank N.A., and BMO Private Bank are affiliated companies within BMO Financial Group.
SOURCE BMO Harris Bank